In this case, you need to ask yourself the question: Do I see myself engaged into my forest activities in the future? There is a widespread misperception that after logging trees or squeezing maximum profit out of the forest all responsibilities for forest management are fulfilled. In fact, according to the Forest Law, forest owners are obliged to ensure the renewal of the logging area as well. That is, income from alienation of logging is accompanied by expenses as well. Prices for soil preparation and planting start from EUR 700 per hectare.

The second important issue for consideration is the way how the real estate was obtained. The primary sale of land returned in due time is not subject to income tax, but the alienation of logging right is subject to a 20% tax. When selling real estate received on the basis of a gift agreement, all income is subject to a tax. So, it is worth thinking about how you can retain most of the income.

Whether it is more beneficial to sell the forest together with the land or as a logging right depends on the further plans of the owner himself and on how this owner received the property.

What should be done to obtain an inheritance?

First, it is necessary to contact a notary. To register the inheritance (register the inheritance property in the name of the heir and divide the inheritance) it is necessary to carry out an inheritance procedure. For the notary to start this procedure, someone must file him/her an application.

Sometimes it is mistakenly assumed that if the testator left a will, the inheritance procedure is unnecessary or that the notary, who certified the will, contacts the heirs himself/herself. In reality, everything is different, and in any case one should initiate an inheritance procedure.

To initiate the inheritance procedure, you can apply to any Estonian notary public and submit a corresponding application. The application should not necessarily be submitted by the heir. It can be done by the creditor or other interested party, for example, an apartment association owning the house where the deceased lived, but in relation to whose apartment no one showed interest.

The whole procedure of inheritance takes place at one notary's place. If one notary has already received an application to initiate the inheritance procedure, he/she will deal with the whole process until the end, even if the other notary makes a later application.

More information about inheritance procedure can be found at: https://www.notar.ee/528

Real estate received on the basis of a gift agreement is subject to tax in case of sale under the applicable law in full in the amount of 20%. If under a gift agreement you receive a forest land, the value of which is specified in a notary contract as EUR 12,000 and then sell it for EUR 15,000, then you must pay the income tax from the full value in the amount of 3,000. This means that in a situation where there are future plans to sell real estate, a gift agreement becomes a gift to the state treasury.

Future plans of the next owner of the property are also decisive in case of inheritance. If the property was returned in due time and there are plans to sell it, the inheritance of the property is the best choice, since in this case it is not considered a sale transaction, then when the heir will sell the land, then as the first alienator he/she will not have to pay income tax. In case of purchased and then inherited property, it will be necessary to pay income tax on profit if selling it. If you buy a property for EUR 12,000 and then sell it for EUR 15,000, then you must pay income tax of EUR 600 from the profit.

In the eyes of the law, a gift agreement is not equivalent to inheritance, and when there is no clarity about the future of a certain real estate, it is not necessary to draw up a gift agreement due to being afraid of inheritance procedure, but to weigh all the pros and cons of both options.

To carry out the forest land purchase-and-sale transaction, one shall conclude a proprietary or binding contract at the notary office. A proprietary contract is a usual purchase-and-sale contract – the sale price is paid immediately and the property is transferred to the new owner. A binding contract can be used when the terms and cost of sale are set, for example, when the buyer waits for some other part of the purchase price.

For both parties, the most secure is to transfer the purchase and sale amounts through the depositary account of the notary, which, in fact, is an ordinary bank account where the notary stores the amount transferred there and, after signing the contract, transfers it to the seller's account within three banking days. In this case, it is necessary to take into account that the money must be transferred to the depositary account of the notary prior to making a transaction, and that the sender of the money must be a party to the transaction – if the money is transferred by a third party, then that person must also participate in the transaction. 

To carry out the agricultural land purchase-and-sale transaction, one shall conclude a proprietary or binding contract at the notary office. A proprietary contract is a usual purchase-and-sale contract – the sale price is paid immediately and the property is transferred to the new owner. A binding contract can be used when the terms and cost of sale are set, for example, when the buyer waits for some other part of the purchase price.

When selling agricultural land, it is important that the seller notify the buyer of the lease contract and its content, by which the land for sale is encumbered. The lease contract passes to the new owner automatically after the sale and only one party to the contract changes (the owner of the land, i.e. the landlord).

See also “value-begetting of agricultural land”

Logging right can be sold without a notary by concluding a logging right alienation contract or a logging right nominal alienation contract. Those who wish to notarize the transaction can register the title to use. Read more about such registration at: “Selling growing forest – what are the opportunities for selling logging rights?”

Please note that the contract should be signed by both parties in all designated places (e.g. on each page, logging plan and at the end of the contract). In case of a handwritten signature, taking a photograph of the other party's identity document will ensure you additional confidence.

To those selling the logging right, we also recommend to note that the contract contains a provision transferring the logging right only after the entire amount is credited to the seller's account. This helps you make sure that the logger is financially reliable before allowing them to dispose of the forest.

There is a widespread misperception that after logging trees or squeezing maximum profit out of the forest all responsibilities for forest management are fulfilled. In fact, according to the Forest Law, forest owners are obliged to ensure the renewal of the logging area as well, even if a part of the forest has been destroyed due to natural causes/disasters, e.g. fire, or suffered from a windbreak. Forest renewal, in essence, means planting a new generation of forest.

As a rule, a forest shall be renewed two years after its logging, so that the soil can recover. Planting begins with soil preparation. Then one should plant seedlings or sow seeds to grow new trees. Prices for soil preparation and planting start from EUR 700 per hectare. After planting, it is recommended to install forest protection for the first five years.

In case of certain tree species, the logging area is left for natural renewal. This method has its shortcoming: one has no guarantee that alder thicket won't appear on the plot instead of forest. If you want the forest renewal to bring specific results and reliable performance, or if you want to get a forest with a certain type of trees, then natural renewal is not for you.

Forest renewal expenses can be deducted from the revenue generated from logging and thus reduce the amount of income tax payable. You can get more detailed information about it from the Tax and Customs Department. In addition, the state subsidizes up to 80% of seedlings purchase amount.

Mature forest won't get more mature or healthy. The older the trees, the weaker their resistance to various diseases and pests. For each tree species, the maturity age differs. At visual assessment, the number of fallen or broken trees can help understand the maturity of forest — there are many more of these in old stands.

Mature forest must be renewed, but it does not necessarily require clear felling. Instead of clear felling you can use thinning, sanitary felling, lightening or chronological felling both by special machines and by a portable saw, but only if the forest renewal starts until the maturity age is over. Considering an overmature forest, clear felling is the only possible solution, as there is no guarantee that after thinning stunted trees will be able to stand as they were.

In terms of cost effectiveness, clear felling is the best way to renew the forest. In addition, in open areas it forest renewal, i.e. planting seedlings and sowing seeds, is the best option. In case of clear felling, pursuant to the Forest Law, only 20 to 70 seed and maiden trees per hectare can be left on the forest land.

The main purpose of thinning is increasing the value of the forest stand. More precisely, thinning helps to finally form the composition of the stand and is especially good before the forest renewal.

Thinning gives valuable specimens or tree species more space for growth. Thinning also helps improve the conditions for natural renewal of the forest and increases the its ability to resist damage both from storms and snow, and pests and fungal diseases. Thinning is effective — it allows to use wood that would otherwise leave the forest in a natural way and remain to rot.

After thinning the forest, at least 60% of the stand is left.

Legal restrictions, such as existing lease contracts, are not an obstacle to sale the agricultural land. In this case a valid lease contract passes to the new owner, and only one party to the contract changes (the owner of the land, i.e. the landlord).

In most cases, these lease contracts in Estonia were concluded many years ago and protect the interests of one party to the contract more than the other. An incorrect lease contract may obstruct subsequent amendment or termination of the contract.

Our team faced even such lease contracts, where the document contained, from a legal point of view, void agreements. One of these, from a legal point of view, is, for example, the lessee's preemptive right to purchase the leased land. The preemptive right to purchase is valid only if it is agreed and certified by a notary, and also included in the real estate register. Whether your property is marked as having a pre-emptive right to purchase can be checked with a household register. Sure, it is not necessary to grant an privilege to the tenant who will offer the landowner a lower price than other potential buyers.

The second, from a legal point of view, void provision, which unfortunately can be seen quite frequently, is the prohibition on or obstruction to termination of the contract. According to Estonian law, any contract can be terminated if there is a motivated reason for doing so, regardless of whether it is a fixed-term or a permanent contract, whether it is concluded with a neighbor or with a a stranger.

If your agricultural land is subject to a restrictive lease contract, please contact us. We know how to solve even the most difficult cases!

When leasing agricultural land, the landowner considers it important that the lessee pays the annual rent in good faith and uses the leased agricultural land for its purpose and without harm to the environment. Whether it is so or not one can check by a thorough check of the tenant or communication with the nearest neighbors who lease their land to the same tenant.

When renting agricultural land, it is also important to conclude a correct lease contract, that would protect the interests of both parties. In most cases, these lease contracts in Estonia were concluded many years ago and protect the interests of one party to the contract more than the other. An incorrect lease contract may obstruct subsequent amendment or termination of the contract.

Our team faced even such lease contracts, where the document contained, from a legal point of view, void agreements, such as preemptive right to purchase and impossibility to terminate the contract. If your agricultural land is subject to a restrictive lease contract, please contact us. We know how to solve even the most difficult cases!

NB! Eesti Maavara OÜ also offers agricultural land owners an administration and management service, in the framework of which we rent agricultural land directly from the owner and look for a subrenter ourselves. In this case, Eesti Maavara remains the responsible party and the owner of the land can be sure that the rent will be payed annually in accordance with the established procedure and that his land will be used for the designated purpose and in good faith.

If it is impossible to sell the property or you do not want to sell it in a whole, then it is reasonable to sell the desired part as an ideal share.

Sale and purchase of an ideal share means that only a certain part of the property is sold based on the plan. If a field, forest and house are registered under one cadastral number, then it is possible to sell all these three parts to different buyers as an ideal share. Legally, all owners of ideal shares will remain equity owners until the end of surveying.

Ideal share sale and purchase transaction shall be registered with the notary. In addition to specifying and determining the ideal share, the terms and conditions for land use are also established, which means that the parties agree, for example, that everyone can dispose of their ideal share at its own discretion, but has no right to affect the remaining ideal shares. They also agree on when the property will be measured and divided into real parts, i.e. separate cadastral numbers, and when the validity of the share property will end, i.e. when each of the buyers will become the owner of his/her part.

The ideal share sale is suitable when there is an urgent need to receive money and it is impossible to wait for the completion of surveying. This method is also used when you want to sell several parts from one whole, and when a buyer for each part will be found, to measure off the property at once.

By agreement on the terms and conditions for land use, the part owners can determine which part of the property can be used by a particular person and which parts will remain shared. For example, they can agree that the house will be used by one part owner and that the forest or arable land will remain in the use of another part owner.

The agreement on the terms and conditions for land use clearly defines which part and to what extent can be used by a part owner. It is also possible to agree on the distribution of costs associated with maintaining, upkeeping or improving the joint property, as well as other issues significant for part owners. The terms and conditions for land use can be defined at the notary office.

Eesti Maavara OÜ purchases forest and agricultural land together with farm buildings, as well as country houses and farm buildings separately. After that we sell farm buildings through our subsidiary Apell Kinnisvara, which became the first real estate agency in Estonia specializing in the sale of farms, forest lands and agricultural lands.

For its items on sale, Apell Kinnisvara offers the possibility to make a purchase through notary installments, so that young families, villagers, people with low earnings or having informal income and others who, from the banks' point of view, are not suitable to be granted a credit, could also create a house of their dreams.

A notarial installment transaction is a legally binding purchase and sale contract, which establishes the conditions that the buyer must fulfill to become the owner of an object. In most cases, the conditions include the first installment, a specific payment schedule, agreed interest rate, transfer of ownership after the first installment payment, and a preliminary mark in the household register.

The price of forest land depends on a number of factors, primarily, forest material.The amount of material available in the forest is measured in solid cubic metres, not in hectares. In some forests there are 2,000 trees on two hectares, in other – only 20. That is, in case of growing forest there is no point in talking about the price per hectare.

Much more important is how many solid cubic metres of material are available — the reserves of growing forest are specified in the forest management plan. The plan also shows the main types of trees that also affect the cost — coniferous trees are more valuable than deciduous ones, but at the same time, the costs of fir and pine trees differ as well.

One of the most difficult things that a landowner can estimate on his own, and that is a significant factor in price formation, is the assortment - whether the forest material contains thick logs, thin logs, pulp wood, fuel wood or residual material.

The soilon which the forest grows is also worth thinking about.On swampy soil trees do not grow that high, and it is also more difficult to plan logging. Soil bonitet and the place of growth determine which tree species can grow as the next generation of forest. If place of growth is type I bonitet, then after the renewal you can choose whether to leave the old assortment or plant more valuable species, which gives you more space during price setting.

One must also note the location of the forest, both in relation to the large hoghways and to the nearest sawmills. Transport costs are a significant part of forest activities.

How to access the land plot? If there is no access to the forest from an open public road and it is necessary to walk through neighbouring lands, then, as a rule, you will have to pay to your neighbours for permission to use. This results into additional costs, which means that forest land with open access is much higher in price. Land plots of unusual shape may also be less valuable if the shape makes it difficult to manage or access the forest.

In general, when forming the price for the forest, the following factors are important: quantity, type and assortment of forest material, soil quality and place of growth, location of the forest land and access to it.

Price formation for agricultural land is influenced by several factors at once. For example, soil fertility is very important. In less fertile soil, one can grow unpretentious plants such as legumes, oats, roots, while in places where the soil is good, the farmer can decide himself which crops to grow. It is okay if soil fertility can be improved by fertilizers and nutrient mixtures, but, for example, clay soil cannot anyway be improved by cultivation.

The second significant factor is the location - where is this agricultural land and what are the characteristics of this area? Competition also affects the prices on agricultural land, both purchase and rental ones. In a village with only one livestock breeder, it would be great to rent a hay for some EUR 50 per hectare a year, while in areas with high competitionrental prices on lands suitable for cereal crops cultivation reach EUR 200 per hectare a year.

In addition to the number of agricultural manufacturers in the area, in case of competition it is important to know what these manufacturers are like. How profitable are they? What are the development plans, are they planning to expand or, quite the opposite, have they just reduced the scope of activities? What manufacturers are currently investing in the purchase of land and do they invest at all? What area of activity brings them income and what are the future plans in this area? How do they react on competition and increase in demand — do they rush to raise prices one after another, conclude agreements quietly or refrain from doing so? It is because of these features that prices differ several times in the same sphere, but in different regions.

The price of a real estate also depends on its size. - A small arable land can be of little interest just because it will be difficult to operate the combine there. For the same reason, the shape. of an arable plot is also important. The larger the size and the more standard shape of the plot, the more farmers will be interested in it.

Approach to the plot - by using public roads or through a neighbouring section — is also important, since if the approach is inconvenient it might be necessary to establish an easement or pay for registration of the terms and conditions for land use, and the farmer will need to take into account these additional costs. Therefore, it is very difficult to sell to a competing farmer the land plots that are located in the middle of the array of fields, cultivated by a single enterprise.

Agricultural activities may also be hampered by restrictions, which include legal restrictions such as lease contract or terms and conditions for land use, and environmental restrictions. Our team is particularily strong in solving complicated issues and we are also interested in buying agricultural land with restrictions.

The price of land directly depends on demand as well — where there is more demand, there is a better price. In Estonia, the population density per hectare of agricultural land is 1.3 persons, and the average price per hectare is EUR 2,890; in Finland the same population density is 2.5 persons and the average price per hectare of agricultural land is EUR 8,718; in the Netherlands, for example, with a population density of 9.4 people, the average price per hectare is EUR 68,197. As population density in Estonia is likely to remain stable in the current demographic development conditions, land prices will be much lower than in Central and Northern Europe. In addition, the agricultural and forest manufacturers there are much wealthier, so comparison with other countries can be misleading.

In general, the price of agricultural land depends on soil fertility, location, characteristics of the area, size and shape of the plot, as well as on the approach to it and the applicable restrictions.

You have certainly wondered why companies interested in your land are looking for an opportunity to contact you.

Direct marketing has become popular in this field only recently. Just 10 years ago, it was not necessary to contact the owners of the land of interest, as through advertisements in county newspapers, portals and bulletin boards one could find enough new objects to fulfill the set volume and objectives of the company.

To date, direct marketing has become the most effective way to search for new objects. In a short time, many competing companies appeared on the market, which are also seeking direct contact with the owner in searching for new objects. Therefore, those who do not do this will simply remain without their market share.

We at Eesti Maavara OÜ believe that telephone communication is a more convenient option for both landowners and entrepreneurs as compared to home visits. By phone the land owner always has an opportunity to refuse cooperation and, if desired, to ask that no one from our company disturb him anymore on this matter. We always respect such wishes and respect people's right to privacy. That is why we do not make home visits looking for contact without prior notice and do not plan to do so in the future.

When selling a property of sentimental importance to the owner, the most common fear is that suddenly this small piece of Estonia will be wiped off from the world. So, people stick all fours to the dear place even after it becomes financially unprofitable. We assure you that the property will remain in the same place and it still will be possible to walk on the home grounds and indulge in speculation.

By selling to Eesti Maavara OÜ, you can be sure that the property will be well-treated and managed in the best possible way so that no land will be left unused. We consider each site individually and select the best possible application for it.

Currently, the sale of any real estate and logging rights is very secure. Selling transactions are made by a notary, which allows to use depository accounts of notaries. If the potential buyer has not transferred money there, then the transaction might be not closed. Therefore, you do not need to worry that you will sign the contract and then will not receive the money, as the notary is responsible for the timely transfer of funds. This eliminates all the risks of being left without the promised money after the transaction is closed.

When selling a growing forest logging right, the contract is usually concluded in such a way that it becomes effective when money from the logging right buyer has been credited to the seller's (i.e. alienator's) bank account. Until that moment the contract is invalid and, accordingly, no logging can be done before the money is received. It also minimizes the risk of being left without profit from logging operations.

For both parties, the most secure is the transfer of money under the purchase and sale contract through the notary's depositary account, which, in fact, is an ordinary bank account, where the notary stores the transaction-related money, and then transfers them to the seller's account within three banking days after the notarial contract is issued. Keeping money on the notary's depository account is an additional guarantee that the transaction will be carried out without risk and the terms of the contract will be fulfilled.

For the seller it is very risky to sign the contract and transfer ownership of the property until the whole purchase amount is received, as in case the buyer does not pay, he/she will have to apply to court. For the buyer it is risky to pay to the seller before signing the contract and receiving the ownership right to the purchased object, as there is no guarantee that the seller will eventually issue the contract or will not prevent the change of ownership by imposing a ban on disposal. Thus, in order to minimize the risk, the use of the notary's depository account is beneficial for both parties.

If you decide to make a settlement through a deposit, it is necessary to take into account that the money must be transferred to the depositary account of the notary prior to making a transaction, and that the sender of the money must be a party to the transaction – if the money is transferred by a third party, then that person must also participate in the transaction. Before the transaction, the notary certifies that he/she has checked the receipt of the money and will pay the specified amount within three working days after the entry in the household register is made. Thus, the parties can be assured that there are no obstacles to carry out the transaction.

Growing forest logging right sale and purchase contract can be concluded at any right time and place suitable for you. You can issue the contract communicating and signing digitally, without meeting face-to-face.

Selling an ideal share or an object as a whole, as well as the registration of title to use are carried out at a notary office. Notaries are available in all the largest cities of Estonia. Check the location of the closest notary office here: https://www.notar.ee/19765

The speed of completing the transaction depends on the date when you book the time at the notary office, which will be suitable for both parties.

Eesti Maavara OÜ cooperates with all major notary offices in Estonia. We have also booked a certain time periods for transactions in such cities as Tallinn, Tartu, Pärnu and Viljandi. Good relations with many notary offices allow us to book time faster and easier, so you will not have to wait more than two weeks.

The division of sale-related costs depends on the agreement of the parties. As a rule, the agreement is made in such a way that the costs are divided between the seller and the buyer 50/50, and the state fee is paid by the buyer.

Eesti Maavara OÜ also offers the opportunity to bear all the costs itself so that no additional sale-related costs and obligations related to state duty payment emerge for the seller.

The way the property was obtained plays an important role in the taxation of both forest and agricultural land. The primary sale of land returned during the reform is not subject to income tax. This also applies if you inherited this property.

If the property has been purchased, the tax is accrued on the profit received from the purchased property, and it does not matter whether the property has been privatized at the expense of privatization securities or purchased in a different way. For example, if you buy a property for EUR 12,000 and then sell it for EUR 15,000, then you must pay income tax of EUR 600 from the profit.

Considering taxes, the most depressing situation is if the property is obtained pursuant to a gift agreement. When selling property received on the basis of a gift agreement, tax must be paid on all income, as from the point of view of the Tax Department this property was received for zero euros. For example, if under a gift agreement you receive a forest land, the value of which is specified in a notary contract as EUR 12,000 and then sell it for EUR 15,000, then you must pay the income tax from the full value in the amount of 3,000. This means that in a situation where there are future plans to sell real estate, a gift agreement becomes a gift to the state treasury.

Logging right sale is a transaction subject to 20% income tax. Income tax payment can be deferred for three years in order to include the costs of forest renewal, such as, for example, soil preparation, seedlings and planting, in the declaration and deduct them from profit. For example, if you sold the logging right in 2018, then income tax will be imposed on the profit you received no later than in the 2021 income declaration. If your profit from the logging right sale was EUR 20,000, and you spent EUR 5,000 on forest renewal, then you will have to pay income tax from EUR 15,000, which will amount to EUR 3,000.

Forest management expenses can be declared only if the forestry is conducted in accordance with the Forest Law. According to Article § 16 of the Forest Law, forest management includes forest renewal, cultivation, use and protection. Regarding forestry activities, one is required to provide a forestry notice to the Environmental Department. Only documented forest management expenses can calculated. It is impossible to deduct from profit the costs paid at the expense of tax-free subsidies.

Shared or joint ownership arises when an item has several owners.

In case of shared ownership, the shares of owners are determined and the size of these shares is expressed as a fraction (ideal share). Each such share owner may dispose of his/her share at his/her discretion, including, if desired, selling such a share. For example, if you own an ideal ⅓ of the property, if you wish, you can sell this ⅓, descend it, pledge, an so on. When selling an ideal share to a third party, other share owners have a preemptive purchase right.

Share owners possess and use the joint property pursuant to an agreement or a majority decision. We recommend you to always notarize oral agreements on the procedure and fix them in the household register, since in such a case this agreement will also be applicable if, for example, the property will be acquired by any third party who did not take part in this agreement.

If it is impossible to reach an agreement regarding ownership of the shared property, then it can be done by majority decision of or in court. The agreement regarding the use of the property does not mean that the share owner is the sole owner of the property. A share owner can always demand the termination of the share ownership and the real division of the property (division into different cadastral units), if possible.

Joint ownership is, as compared to shared ownership, a more personal type of ownership and arises only in cases stipulated by law. Joint property arises, for example, for spouses who are subject to the community of goods principle for property acquired during marriage (except for property obtained by inheritance or under a gift agreement) and for obligations undertaken in the interests of family. Joint property also arises in case of inheritance. If the ownership is joint, the size of the shares is not determined. Any transactions with jointly owned property can be made only jointly, i.e. the owners cannot sell their shares separately.

In other words, in case of shared ownership the share owners have some independence in deciding what to do with their shares, whereas in case of joint ownership all decisions must be made together.

Eesti Maavara OÜ has more than 10 years of experience related to the division of shares and joint ownership. If you have problems with shared or joint property, please contact us!

Shared or joint ownership arises when an item has several owners.

In case of shared ownership, the shares of owners are determined and the size of these shares is expressed as a fraction (ideal share). Each such share owner may dispose of his/her share at his/her discretion, including, if desired, selling such a share. For example, if you own an ideal ⅓ of the property, if you wish, you can sell this ⅓, descend it, pledge, an so on. When selling an ideal share to a third party, other share owners have a preemptive purchase right.

Share owners possess and use the joint property pursuant to an agreement or a majority decision. We recommend you to always notarize oral agreements on the procedure and fix them in the household register, since in such a case this agreement will also be applicable if, for example, the property will be acquired by any third party who did not take part in this agreement.

If it is impossible to reach an agreement regarding ownership of the shared property, then it can be done by majority decision of or in court. The agreement regarding the use of the property does not mean that the share owner is the sole owner of the property. A share owner can always demand the termination of the share ownership and the real division of the property (division into different cadastral units), if possible.

Eesti Maavara OÜ also purchases shares with no established terms and conditions for use. Contact us!

The property encumbered with mortgage, either state or payable to a credit institution, can be sold despite the existing encumbrances. Sure, you need to notify the buyer about the encumbrances while paying attention to whether the real estate is encumbered with a void or partially unpaid mortgage. For example, many state mortgage users have already paid it down, but have not filed mortgage lien release applications. It is quite simple to get it right before going to a notary.

In case of a state mortgage, the mortgage holder is the Republic of Estonia, and so its representative must participate in the transaction on selling real estate. Since January 1, 2018, the tasks of the mortgage holder are performed by the State Support Center. You can contact us at: https://www.rtk.ee/nouete-tasumine-ja-volgade-haldus/hupoteegi-pidamine

Mortgage in favor of credit institutions can be surprising. For example, one might think that the bank imposed a mortgage only on housing, but in fact, all cadastral units of real estate are encumbered. To sell mortgaged property, you need to contact the institution that issued the mortgage, and its representative must also participate in the transaction.

The most common way to get rid of the mortgage during the sale is to pay the residual loan amount from a notary deposit. For example, if your loan balance is EUR 3,000 and you sell a property for EUR 15,000, the notary will transfer EUR 3,000 directly to the bank or state, and you will receive EUR 12,000 to your account.

Eesti Maavara OÜ makes packages of forests and logging rights purchased by the regions, which would seem attractive to our cooperation partners. This is beneficial for the land owner as well, as in case of a package the profit depends not on one real estate, but on the whole package – the larger volume is sold at once, the higher price can be requested. Thanks to many years of cooperation with our partners, we can offer the best price in every country of Estonia even for a small logging area.

Buying a forest package, a timber company will also have no interest in cutting down more than provided by the forestry notice. Thanks to packaging, we can provide very high quality and always take full responsibility for the work done.

Agricultural land prices will certainly rise. But what growth could be predicted for the future?

Numerous landowners hope that one day the agricultural land price level will rise to the level of, for example, Central Europe or our northern neighbour Finland, but such a leaping growth does not seem to happen.

Land prices directly depend on demand — where there is more demand, there is a better price. In Estonia, the population density per hectare of agricultural land is 1.3 persons, and the average price per hectare is EUR 2,890; in Finland the same population density is 2.5 persons and the average price per hectare of agricultural land is EUR 8,718; in the Netherlands, for example, with a population density of 9.4 people, the average price per hectare is EUR 68,197. As population density in Estonia is likely to remain stable in the current demographic development conditions, land prices will be much lower than in Central and Northern Europe. In addition, the agricultural and forest manufacturers there are much wealthier, so comparison with other countries can be misleading.

What is the difference between arable land and permanent pasture?

Permanent pasture is the land where the herbs mixture has grown continuously for at least 5 years in a row. Since 2017, permanent pastures have become forbidden to cultivate, in other words, to change the purpose of land use. For example, if from 2009 to 2014 the land was used for millet cultivation, and from 2014 to 2019 the land was registered with the Department of Agricultural Registers and Information as a hay and pasture, it will remain so.

Permanent pastures cultivation leads to a reduction in subsidies supporting agricultural traditions, which are favourable for the climate and the environment. After 2017, prices for permanent pastures have decreased in many areas, as only livestock farmers, whose number is much smaller as compared to farmers, are interested in their use. Accordingly, there is less competition, which affects the prices.